OIL PRODUCTION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R013800050014-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 20, 2016
• Document Release Date: March 17, 2006
• Sequence Number: 14
• Publication Date: September 9, 1952
• Content Type: REPORT

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Approved For Release 2006/04/18 : CIA-RDP88-00457R013800050
.., ..... 51-IAA
F96 1952
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CLASSIFICATION
CENTRAL INTELLIGENCE AGENCY
SECRET/CONTROL - U.S. OFFICIALS ONLY
SECURITY INFORMATION
INFORMATION REPORT REPORT N
COUNTRY Hungary
SUBJECT ,Oil Produo
25X1 DATE OF
I N;FO.
25X1 PLACE
ACQUIRE
NOT CIRCULATE
CD NO.
25X1
DATE DISTR. 9 September 1952
NO. OF PAGES
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL
OF THE UNITED STATES, WITHIN THE MEANING OF TITLE 18, SECTIONS 793
AND 794, OF THE U.S. CODE, AS AMENDED. ITS TRANSMIS51ON OR REVE-
LATION OF ITS CONTENTS TO OR RECEIPT BY AN UNAUTHORIZED PERSON IS
P R O H I B I T E D BY LAW. TH E REPRODUCTION OF THIS FORM I5 PROHIBITED.
,_ .
10
General a
125X1
fact ?d or from other Soviet bloc` countries., In this endeavor,: the
Ganz and M~tyas P4kosi works are particularly prominent. German manufacturer's
are ' steadily losing this o#0e profitable market and will find it difficult
to re-enter it. The Rako ' storks are now producing sufficient casing, tubing
drt ..-pipe, and tool joints t~ almost 'o t? current requirements, and,
although their products a-a_'below internationally recognized standards, they
suffice for present drilling depths and pressures.
THIS IS UNEVALUATED INFORMATION
w 110 the eman or special equ pmen rom abroad . rema s as
acu a as ever., there is no oubt' that Hungary is makinW, great and, in many
respects, subeessful efforts to cover her rpquirements from domestic marnu-
b. In order to save material, operators content themselves with the minimum
strength for casing, and disregard the normal safety factors, Wells are
cased down to 2,000 =tars with 6 millimeter casing, although this is
strentthened by a strong cement coating. Improvisation is rendered necessary
in almost every phase of productio.o this is largely successful because
there are experienced operators available. Their drilling equipment in not
only old, but renovated in their own workihops with inadequate machinery and
materials, but the footage drilled is quite remarkable.
ca There is a plentiful supply of motor trucks and traildre ofatype' capable of
negotiating the atrocious tracks in the oilfield areas. While German firms
are not permitted to deliver certain types of vehicles because they are
categorized as potential war equipment, one sees in Hungary heavy trucks,
mainly # F reach or A csa4h- eei?igissr kith r eeiarl w3ao es six-wrhee . ? dr v. sad
separate drive for auxiliary purposes. Many of these were clearly imported
quite recently.
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Approved For Release 2006/04/18.: CIA-RDP82-00457RO13800050014-3
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25X1
d, For some time past the whole industry has been divided into-separate
drilling and production departments, each operating quite independently and
each separately,responsible for fulfilment of its part of the Five-Year-Plane
A few weeks ago the whole of the workshop operations were placed on a
separate footing; this department now operates like an outside undertakings
being paid for work done like a private company.
A large workshop is at present under construction in Na.gykanizsa. This is
destined to deal with the repair work not only of the drilling and
production depmrtments, but also of the transportation department. It will),
if possible rgy,g,o ManUfaotwr?e certain replacement parts. A large warehouse
is also to be constructed to handle supplies to all departments.
The oilfields in Lispe, Lovaiszi, etc., which formerly boasted eiece .lent
roads and equipment, are now %rery neglected as all available labor is con-
contrated on fulfilment of the norm. This neglect will result in greatly
increased wear and tear of machinery and transport.
The ex-Maori (Hungarian-American Oil Company) fields are working with about
14 drilling units, and practically every one is of a different make or type.
The task of supplying replacements is consequently almost insurm8untable,
and it is only due to the well-trained body of operators left by the
Americans that it is possible to carry on, Results on the average are about
130% of the norm.
h. The oilfields are effectively sealed off, and can only be visited after
obtaining a permit from the Ministry of the Interior and the Budapest
Police Headquarters,
I. The geological and production staffs have remained intact and, although
for the most part politically indifferent, they are allowed a free hand,
Only the paid informers, and the staffs of certain key administrative
departments, are composed of Party men.
2. Production.,
a, Oil production in Hungary, a year ago was only 450,000 tons per annum. In
the meantime, such a drive has taken place to discover new producing areas
that the figure is now 520,000--550,000 tons This increase comes from the
new ex-Maort,field about 60 km. north of Lovaszi, and from the new
discoveries by the Maszol&J In eastern Hungary. The Hungarians state that
they are certain of reach~_ 600,000 tons by the end of 1952,
.b.. Natural gas Is produced from the Keredje-Lispe field (700,000 cubic meters
per day), and the Lovaszi field (about 600,000 cubic meters per day). This
gas is de-benzinizsd, and all useful products, such as butane, ethane,
propane etc. are extracted. The remaining gas is then used partly for re-
pressuring, partly for the production of carbon-black and partly for trans-
mission to Budapest through the existing oil pipeline. The carbon-black
plant, in the Keredjelispe area, is very primitive, and produces only 16
grammes per cubic meter of gas, as against the USA figure of 36-38 grammes.
3, New Drilling:
a. Prospecting is takingplace in wide areas with the greatest speed commensurate
with the equipment, available. In spite of difficulties, the ex-Matrt
company has s1cceeded in exceeding known records for footage drilled, the
beat figures being 733 and 739 meters per 24 hours, The best years total
from a drilling rig with a stripped derrick exceeded 30,000 meters, a
figure never even approached in ermany,
b. A new field, about 60 km, north of Londava is producing, at depths of some
1,300 meters, 30-40 tons of crude oil per well per day, with no gas. Re-
pressuring is effected by water, the oil being pumped only from the well-
head,
a. In eastern Hungary, in the Szeged-Totkomlos-Bekescsaba region, the wells
are yielding mostly gas, with only a small proportion of oil,
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Approved For Release 2006/04/18 CIA-RDP82-00457RO13800050014-3
 Approved For Release 2006/04/18 : CIA-RDP82-00457RO13800050014-3
SECRET/CONTROL - U.S. OFFICIALS ONLY
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40
a. Drilling units, ate., are not produced in Hungary, but imported from
) nnesxnann-Trauzl, Vienna, and Resita and Concordia in Rumania. Trauzl
has a production of 40. 50 large and medium drilling units per :year,,
These are exported mainly to the USSR.
Sources of egUI ae .to
b. Hungary recently acquired the following new drilling units8
1) 2 heavy (39000 meters) units from Russia. Stelino 240 h.p. V--12
engines, a universal type. Each unit was delivered with two reserve
engines. The Hungarians said that the engines only delivered 180
h.p. and were unreliable.
2 light units from Russia. Marked "U" indicating-that they originated
probably from the Urals. A. special point in regard to these light
units is that the mast weig'hi 30 tons and is loaded by the Hungarians
with only 40 tons, whereas it could bear at least doubles if not treble,
of that weight. This inefficient operation is due to fear of accusations
of sabotage if something went wrong,
2 units from Mannesmann Trauzl9 Vienna, 29000 meter "Adaptor" type,,
like the American "Hilld.'ive Outfits" old styleo
c. Russia is supplying Hungary s in small quantities, with 5Te and c " rock
bits, said to be of fairly good quality. Casings tubing:, urillpip~:, and
tool joints are manufactured by the Rakosi works, but only up to ML
quality API J,55. They cannot produce quality N. 80, etc., and can make
drilipipe only up to Grade "Y. There is still a plentiful supply of
Molybdenum for steel for tooljointe, but no chrome nickel. The Ganz
factory is raking great progress in the production of machine tools, and
already has an export surplus.
Bottlenecks are fishing tools, rock bits, good tooljoints, and drill collar's,
,spite supplies from the USSR and their on industry,; Hungary yearn.,
for quality oil equipment, incorporating the latest improvements. They
consider the Russians in this particular field as extremely unimaginative,
SECRET/CONTROL - U.S. OFFICIALS ONLY
Approved For Release 2006/04/18 : CIA-RDP82-00457RO13800050014-3